Snap Store Supply Chain Attack Exposes Linux Users to New Risks to Crypto Assets

Security incidentssoftware supply chaincrypto asset securityrisk governanceindustry insights

On January 21, a security advisory drew widespread attention across the industry. Security researchers revealed a new form of supply chain attack affecting the Snap Store on the Linux platform. In this attack, adversaries took control of expired domains associated with legitimate developers, regained access to original developer accounts, and distributed tampered applications to users through official update channels, ultimately enabling the theft of crypto assets.

Attack Methodology and Technical Path

According to disclosed information, the attackers did not target newly registered developer accounts. Instead, they focused on publishers that had built long-standing credibility on the Snap Store but whose associated domains had expired. Once a domain lapse was identified, attackers promptly re-registered the domain and used the corresponding email address to trigger the password reset process on the Snap Store, thereby hijacking the original publisher identity.

As a result, software that users had installed years earlier and continued to trust could, after a seemingly “legitimate update,” be injected with malicious code. The entire process occurred within the official distribution channel, making the attack highly covert.

Impersonated Applications and Victim Impact Pathways

Confirmed cases indicate that some compromised publisher accounts distributed applications disguised as common cryptocurrency wallet clients. These apps closely resembled legitimate versions in both interface design and user interaction. Upon launch, the application first communicated with a remote server to verify the network environment, then prompted users to enter their “wallet recovery mnemonic phrases.”

Once submitted, this highly sensitive information was immediately transmitted to servers controlled by the attackers, allowing them to transfer assets within a very short timeframe. By exploiting users’ trust in official app stores and familiar software, such attacks often result in real losses before victims become aware of any abnormal activity.

Practical Implications of Supply Chain Risk

Unlike traditional phishing attacks, this type of incident does not rely on fake websites or malicious download links. Instead, it occurs directly within application distribution systems that are widely perceived as “secure.” This significantly reduces the effectiveness of user vigilance alone and highlights the critical role of software supply chains in crypto asset security.

For institutions and professional users, post-incident analysis of anomalous transactions, suspicious addresses, and fund flows has become an essential means of understanding and assessing the scope of losses. In practice, some teams integrate on-chain monitoring systems such as Trustformer KYT to conduct structured analysis of related transaction behaviors, supporting risk post-mortems and compliance assessments.

Conclusion

The Snap Store incident serves as a reminder that as attack techniques continue to evolve, crypto asset risks are expanding beyond isolated on-chain vulnerabilities into more complex software supply chain layers. In environments that heavily rely on automatic updates and third-party ecosystems, continuous monitoring of transaction behavior and fund flows is increasingly becoming a foundational measure for managing uncertainty and emerging risks across the industry.

About Trustformer

Trustformer is a leading blockchain security and compliance technology company specializing in providing professional risk management and compliance solutions for the global cryptocurrency ecosystem. We have developed the cutting-edge Trustformer KYT (Know Your Transaction) platform, which integrates artificial intelligence, blockchain analytics, and regulatory technology to deliver comprehensive, accurate real-time transaction monitoring, risk assessment, and suspicious activity reporting services.

With deep industry expertise and technological innovation, Trustformer is dedicated to helping Virtual Asset Service Providers (VASPs), crypto financial institutions, and investors build a safer and more transparent crypto financial environment. We believe that driving compliance and trust through technology can contribute to the thriving growth of the global digital economy.